6. High Leadership and High Management Can Be Created With Teamwork X = Managers / Executives T = How the group acts when fused as a team The WINNING process is 75% Leadership & 25% Management but both are required to run a business in an Era of Change Source : John Kotter Harvard Business School Management Leadership 0 + ++ ++ + X X X X X X X X X X X X X X X X T
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10. CREDO (Value Statement) … We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services . In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers’ orders must be serviced promptly and accurately…. We are responsible to our employees , the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. .. We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens — support good works and charities and bear our fair share of taxes… Our final responsibility is to our stockholders . Business must make a sound profit. We must experiment with new ideas…
11. Airline Performance 2002 Source : Mike Tushman Harvard Business School Cost per seat mile Revenue per seat mile Percent On-time Southwest 7.38 7.59 82.1% Usair 15.20 12.11 81.0% United 11.61 9.34 82.5% Continental 10.96 9.47 85.2% Delta 11.16 9.25 78.8% American 11.55 9.50 82.6% Northwest 10.71 9.47 79.6%
14. Wal-Mart Competitive Positioning The LCP and Low Priced Provider of discount merchandise and food worldwide (with emphasis in the US on rural and suburban locations) through aggressive cost management, superior logistic, HR and IT…. Source : David Yoffie Harvard Business School
17. Ambidextrous Organization TECHNOLOGY Source : Mike Tushman Harvard Business School People Culture Key Success Factors Formal Organization People Culture Key Success Factors Formal Organization People Culture Key Success Factors Formal Organization MARKET Existing New Continuous Architectural Discontinuous Revolutionary Change Revolutionary Change Retention (Incremental Change) Variation (Discontinuous or Architectural Change)
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19. CPS 2004/5 Span of Control Span of Accountability Narrow Wide Few Resources Many Resources Span of Influence Span of Support Interactions Within Unit Interactions Across Units Measures Allow Few Tradeoffs Measures Allow Many Tradeoffs Strong Commitment Of Help From Others No Commitment Of Help From Others Source : Robert Simons Harvard Business School Demand is higher than Resources
20. CPS 2006/7 Span of Control Span of Accountability Narrow Wide Few Resources Many Resources Span of Influence Span of Support Interactions Within Unit Interactions Across Units Measures Allow Few Tradeoffs Measures Allow Many Tradeoffs Strong Commitment Of Help From Others No Commitment Of Help From Others Source : Robert Simons Harvard Business School Demand matches Resources
21. CPS 2007/08 Span of Control Span of Accountability Narrow Wide Few Resources Many Resources Span of Influence Span of Support Interactions Within Unit Interactions Across Units Measures Allow Few Tradeoffs Measures Allow Many Tradeoffs Strong Commitment Of Help From Others No Commitment Of Help From Others Source : Robert Simons Harvard Business School Demand is slightly higher than Resources
23. The Executive Compass Customer Definition Business Strategy Creative Tension Strategic Boundaries Systems Safeguards Strategic Uncertainties Shared Values Critical Performance Variables Commitment to Others Source : Robert Simons Harvard Business School